Main reasons to start your Exeter lease extension

Why you should commence your Exeter lease extension today:

A Exeter lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Exeter. Clearly, the term of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Exeter have the right to extend the lease for a further ninety years under Leasehold Reform legislation. You should give due consideration before delaying your Exeter lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension

Exeter property with a lease extension is almost the same value as a freehold

Leasehold properties in Exeter with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not grant a mortgage on a short lease

Lenders are tightening their criteria and a meaningful number now want flats to have a minimum of 60 if not 70 years left once the mortgage has expired. Given that a number of flats in Exeter were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in Exeter?

Lease extensions in Exeter can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Exeter lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Exeter Lease Extension Case Studies:

Harriet, Exeter, Devon,

Subsequent to protracted correspondence with the landlord of her basement apartment in Exeter, Harriet commenced the lease extension process just as the lease was approaching the critical eighty-year threshold. The transaction was finalised in October 2011. The landlord’s costs were restricted to slightly above 550 GBP.

Exeter case:

Last April we were approach by Mrs Kelsey Alexander , who took over the lease of a garden flat in Exeter in February 2008. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative properties in Exeter with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished on 4 November 2101. Considering the 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.

Exeter case:

In 2011 we were contacted by Mr Alex Norbert who, having purchased a purpose-built flat in Exeter in July 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Exeter with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed quarterly. The lease came to a finish on 4 August 2090. Considering the 64 years left we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus legals.